Aberdeen concerned over Asian company valuations.

Investment Adviser, February, 2006

Aberdeen has pinpointed company valuations as its main concern in the Asia Pacific region this year.

Hugh Young, managing director for Aberdeen Asia, said valuations were not as cheap as they were at their lows in the early 2000s. With valuations re-rating substantially, regional portfolios were trading at roughly 15 or 16 times earnings.

He added that there was also scope for disappointment for company ratings, although decent earnings growth would be seen again this year.

In contrast to this he said the quality of companies, their management and balance sheets remained excellent and this gave them scope to pay out more in dividends or share buybacks.

While growth was predicted to be slower this year than last, signs of recovery in...

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